This article will explain an important IRS loophole that can help you protect your retirement savings. We’ll also cover how to get your free IRS loophole guide so that you can learn how to best protect your wealth in a tax-deferred way.
Why is this important right now?
With inflation, economic uncertainty, and Washington wanting to raise your taxes, you need to act fast to protect your retirement savings and investments.
Congress and the White House are considering tax plans directly aimed at your retirement investments.
Therefore, if you DON’T want to see your retirement income face possible double-digit taxes, you need to protect your retirement money. Now.
Protecting your hard-earned money should be your top priority. So, keep reading this article because we will explain an IRS tax loophole to help you do that.
There is a unique IRS loophole that lets you move your IRA, 401(k), pension, TSP, and savings accounts into certain tax-advantaged investments that could protect your retirement savings from potential taxes and inflation.
This IRS loophole is 100% tax-and penalty-free, too – for now. The White House is desperately trying to close this loophole, so you’ll want to take advantage of it immediately.
The nation faces higher inflation, instability, and higher taxes, and some experts even say stagflation. If you don’t plan for these changes, you may lose part of your retirement savings to unnecessary taxes. This means less money for yourself.
This IRS loophole is about investing in gold, silver, and other precious metals through your IRA, which we’ll take a closer look at next. This tax loophole can help you protect your retirement savings and, at the same time, grow your wealth.
A common financial concern is avoiding taxes on IRA and retirement plans. Below, we share IRS rules concerning Precious Metals and Gold IRA accounts and some important free IRS loopholes.
1. Make Tax-Free Contributions
Current IRS rules concerning Precious Metals and Gold IRAs allow some individuals to deduct the full amount of their IRA contribution from their taxes.
- Traditional Gold IRAs are funded with pre-tax dollars, meaning you don’t pay taxes on the money you contribute
- And since contributions are tax-deductible, this reduces your taxable income for the year in which you contribute
- Instead, you pay taxes on any money you withdraw from the IRA at the time you withdraw it
However, it’s important to note that this IRS loophole only applies if your IRA plan is NOT covered by or contributed to by your employer.
All right, that’s an important IRS loophole for contributions. What about IRA withdrawals?
While there’s no way to avoid paying taxes on your IRA withdrawals completely, there are a few ways to reduce what you owe on these tax-deferred accounts.
So, let’s look more closely at IRS Gold IRA withdrawal rules and loopholes.
2. Standard IRS Rules For IRA Withdrawal
Knowing the IRS rules will help you avoid penalties and unnecessary taxes. If you withdraw from your Gold IRA before 59 ½, you will receive a 10% penalty from the IRS. This is because your initial retirement funds were not initially taxed.
So, you can start taking penalty-free withdrawals if you meet the following criteria:
- When you’ve reached 59 ½ years old
- Additionally, you’re not required to take withdrawals until you are 70 ½
While you may need your distributions at 59 ½ if you can wait until you are 70 ½ years old, that gives you another 11 years, during which your precious metals will likely grow in value.
In general, required minimum distributions (RMDs) are time-sensitive and must begin by the following dates:
- By December 31st of each year, once you reach 70½ years of age
- However, the initial RMD may be postponed until April 1 of the following the calendar year
Most Self-Directed IRAs calculate your annual RMD amount for you. Also, Roth IRA owners do not have to take RMDs.
There isn’t any time to waste – click the link below to get your FREE IRS Loophole Kit today.
3. IRS Rules & Loopholes – Gold IRA Distributions
Now let us share one strong advantage of Gold and Precious Metals IRAs. According to IRS rules, Precious Metals and Gold IRAs provide more distribution options than paper investments.
One significant difference between precious metal IRAs and other standard IRAs is that, since you own the physical assets, you have two distribution options:
In-Kind Distribution – you can receive the precious metals as a direct distribution — which means the bars or bullion coins will be shipped securely to you. When you receive the metals, you can choose to do what you want with them at that time.
Standard Liquid Distribution – like other retirement accounts, you can receive your distribution as a check, money wire, or ACH payment.
Many precious metal dealers and Gold IRA companies will convert the precious metals to cash and pay you the highest market price based on the distribution date.
If you choose an in-kind distribution, your Gold IRA company and the IRS-approved repository will ensure that your withdrawal from your precious metals IRA is easy, secure, and fast.
Other Ways Of Avoiding Taxes On Gold IRA Withdrawals
Here are 2 other ways to avoid unnecessary IRS taxes on your Gold IRA withdrawals.
1. Avoid Withdrawal Penalties With IRS Rule 72(t)
If you face an early retirement before age 59 1/2, you may need to access your IRA before you plan. But how do you avoid the early withdrawal penalty?
Thankfully, the IRS has a special rule called 72(t) that offers a penalty-free tax break on early withdrawals. The 72(t) rule exempts you from the 10% early withdrawal requirement as long as you do the following:
- Take at least 5 substantial, equal, periodic payments (SEPPs)
- Adhere to the withdrawal schedule for 5 years
- Or follow the same schedule until you reach age 59 ½
The amount you need to withdraw depends on your life expectancy, calculated through IRS-approved methods.
2. Transfer IRA Funds Into A QLAC
Qualified Longevity Annuity Contracts (QLAC) are another possible way to minimize your tax liability to the IRS. QLACs were approved by the US Treasury Department and the IRS in 2014.
Using a QLAC, you can exempt 25% of your IRA from RMD requirements up to $130,00. Funds placed in these accounts are exempt from RMDs until you reach 85. There’s a cost for setting up a QLAC, but it could provide you with significant tax benefits.
Depending on your situation, you could have several options to help avoid taxes on an IRA withdrawal. But you won’t know these tax-saving options unless you learn about them.
We’ll even cover all the shipping & handling charges – so this kit is truly 100% FREE. This means you won’t pay a dime to learn how to protect yourself from nightmare tax plans – FAST.
And as a free ONLINE bonus, we also provide a complete guide on the best ways to invest in precious metals. Further, we have also carefully vetted the best precious metals companies in the US to help you choose the best provider for your investment needs.
To learn more, you can request a Free Kit from each precious metals company below.
We believe investing in precious metals through a Gold IRA can help protect your retirement account against inflation, an unstable market, and economic corrections.
Taxes can be a complicated matter, and many of the rules vary from year to year. If you feel you’re over your head, you may want to consider consulting a financial advisor or Certified Public Accountant (CPA). They can help you determine the most tax-efficient ways to manage your IRAs and other investments.
Thank you for reading, and we hope you benefited from this article on how to protect your retirement savings in a tax-deferred way.
About the Author
Gregory is a real estate sales agent and a state-certified instructor of real estate licensing and law. He has also written on economic and financial issues for many years. Originally from New York City, he's called Grand Rapids, Michigan home since 1995.